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MEMORANDUM TO THE DMA CONTRACTING OFFICER

Note to Contracting Officer’s Representative (COR): Complete this memorandum regarding the

exercise of an Option period.

MEMORANDUM

TO: _________________________________(KO), DMA Acquisitions and Procurement

FROM: ______________________________________(COR)

SUBJECT: OPTION

REF: Contract Number ___________________ ______________[Contract number] with

_____________________________________________________________[Contractor]

The referenced contract is due to expire on _______________________. This contract

provides for an extension by exercising Option________________ [insert Option number]

to extend the contract for a period of _________________________________[insert time

frame of Option, not to exceed one year, or modify to identify the additional supply

option.]

This memo serves to certify to the Contracting Officer that:

(1) there is a continued need for the services performed under this contract;

(2) sufficient funds will be available to exercise this Option;

(3) you wish to have this Option exercised; and

(4) the Contractor’s performance has been satisfactory.

I understand that the Contracting Officer must also make an affirmative determination that

exercise of the Option is in the best interest of the Government and is the most advantageous

method of fulfilling the Government’s need for these services.

The certification by the COR is provided by checking the appropriate box(s) and signing at the

bottom of the form.

ACTION TYPE

This request documents the need and eligibility to exercise an option under the subject

contract.

This request notifies the Contracting Officer that the program office does NOT intend to

exercise contract option(s). BY CHECKING THIS BOX THE COR UNDERSTANDS AND AGREES

THAT THE CONTRACT WILL NOT BE EXTENDED, SERVICES RENDORED, OR SUPPLIES

DELIVERED PAST THE CURRENT PERIOD.

If Option will NOT be exercised, sign below and obtain concurrence from Program Manager.

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Return this portion of the form only.

COR Signature: ___________________________ Date: _________________

PM Signature: ___________________________ Date: _________________

PERFORMANCE

The COR has monitored the contractor as required in the contract. Results are indicated

below.

The Contractor has been performing:

Above expectations

At an acceptable level

Below an acceptable level. (When checked, COR must explain)

________________________________________________________

Contract Deliverables have been reviewed. They have consistently been rated as follows.

On Time and of Good Quality

Late or of Poor Quality (When checked, COR must explain)

________________________________________________________

For all contracts over $150,000, interim performance evaluations have been conducted in

accordance with the below (https://www.cpars.gov/):

Attached please find a completed performance evaluation (CPARS), or

I have entered the performance information into the CPARS on __________[insert date].

Not applicable, service contract is under threshold for required CPARS entry or is for

supplies.

BONA FIDE NEED

I certify the following (check ALL applicable boxes):

A requirement exists for the supplies or services covered by this option. There is a definite

and continuing need for continuity of this service.

Disruption of the service or discontinuation of supply would have a negative impact on the

program mission.

Sufficient funds, PR, will be provided to exercise the Option within __ days in DAI.

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If IDIQ:

We expect requirement(s) to develop for orders under this indefinite delivery contract and

funds will be provided with in __ days when the requirements become definite.

PRICING

I certify the following (check ALL applicable boxes):

The option price is the most advantageous price.

There is a definite need for continuity of this service. Disruption would have a negative

impact on the using organization in meeting their customer needs and in turn increase the

cost of re-establishing satisfactory service due to the cost of re-solicitation and the possible

increase in cost of service.

Option prices were competed and evaluated at the time of award, and are exercisable at

a specific dollar amount as stated in the basic contract.

It is anticipated that a new solicitation will not produce a better price, or more

advantageous offer.

There was adequate price competition for the contract award.

The time between award of the contract and Option exercise is so short that the Option

price is the lowest obtainable or the most advantageous offer, taking into account factors such

as market stability and the usual duration of contracts such as this.

There are no known additional sources to solicit for the option period. We anticipate the

same number of potential sources if we were to re-solicit for this service.

An informal analysis indicates there are no changes in the local economy that would

affect the cost of performance. Given the potential savings in administrative costs by

exercising the option as compared to the administrative cost of awarding a new purchase

order, the option prices are the best available.

An examination of the market indicates that the Option price is in the market or that the

Option is the most advantageous offer. (NOTE: CO WILL ADVISE YOU IF CPI IS NOT

POSITIVE).

The Consumer Price Index (CPI) issued by the Department of Labor Statistics is

POSITIVE. That means that inflation may increase the cost of the option if solicited now.

The Consumer Price Index (CPI) issued by the Department of Labor Statistics is

NEUTRAL. That means that prices for this option would remain the same as they are in

the option.

The Consumer Price Index (CPI) issued by the Department of Labor Statistics is

NEGATIVE. Pricing should be fully evaluated by prior to exercising the option.

CERTIFICATION

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I certify that the foregoing is true and accurate to the best of my knowledge. I have attached

a CPARS record (if applicable) and a Purchase Request will be submitted in DAI as noted

above.

COR Name & Signature: ___________________________ Date: ______________

CONCUR:

PM Signature: ___________________________ Date: _________________